Davao Norte Rep. Floirendo faces raps over BuCor-TADECO deal

The Office of the Ombudsman has found probable cause to indict Davao del Norte Rep. Antonio Floirendo for graft over his alleged financial interests in the anomalous lease agreement between the Bureau of Corrections and the Tagum Agricultural Development Corporation (TADECO), Inc. 

In a resolution signed on September 18, Ombudsman Conchita Carpio Morales ordered the filing of information against Floirendo before the Sandiganbayan for violation of Section 3(h) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act.

"All in all, this office finds that the complaint offered sufficient evidence showing that respondent probable committed a violation of Section3(h) of RA 3019 and thus there is probable cause to indict respondent for the offense," the resolution reads. 

The case arose when House Speaker Panteleon Alvarez charged Floirendo in March over alleged interest in the Consolidated Joint Venture Agreement between TADECO, whose major stockholder is Floirendo's family, and its subsidiary Anflo Management and Investment Corporation (ANFLOCOR).

Alvarez narrated in his complaint-affidavit that in 1969, TADECO entered into an agreement with BuCor to lease a portion of land in the Davao Penal Colony to be used for the former's banana plantation.

The Consolidated JVA was executed in 1979 which extended the period of lease for 25 years and renewed in May 2003 for another 25 years.

At the time the contract was renewed, Floirendo was already a representative of the 2nd District of Davao del Norte. But while he was serving as representative in 2003, Alvarez alleged that the lawmaker was also a stockholder of TADECO.

Alvarez, citing data from the Securities and Exchange Commission, said Floirendo was also a board member of ANFLOCOR from 1997 to 2015.

In its resolution, the Ombudsman said there is no dispute that Floirendo was already a representative of the Second District of Davao del Norte when the 2003 agreement between TADECO and BuCor was signed.

The Ombudsman also affirmed the accusations of Alvarez that Floirendo owned 75,000 shares of TADECO worth P7.5 million.

In his counter-affidavit, Floirendo said Alvarez was unable to prove that he had any financial interests in the 2003 agreement and was "neither involved nor had any participation whatsoever in the negotiation."

Floirendo also denied that the served as a member of TADECO's board of directors from 2007 to 2007, and that he received financial benefits from his relatives who owned the company.

However, the Ombudsman said the lawmaker is still liable for the offense as stated in the second mode of committing a violation of the law.

"The accused is a public officer, he has a direct or indirect financial or pecuniary interest in any business, contract or transaction, and he is prohibited from having such interest by the Constitution or by law," the resolution said.

The Ombudsman added that Floirendo has "probably breached" Article VI, Section 14 of the 1987 Constitution since he and his family owned most the the shares of stock of TADECO.

The constitutional provision states that no member of Congress is allowed to intervene in any government contracts before any agency for his pecuniary benefit during his term of office.

"A member of the House of Representatives is not allowed to have a direct or indirect financial interest in any contract with the government. Had the intention been to exclude ownership of small value of stocks in a corporation, the framers of the Constitution could have stated it," the Ombudsman said.

The Ombudsman noted that it has no choice but to apply the law despite the possibility of opening up other legislators for possible indictment due to their interpretation of the law.

"To do otherwise is to supplant the wisdom of the people who approved the Constitution with its own," it said. —LBG, GMA News